The Australia Institute • Jake Wishart • July 18, 2022 • australiainstitute.org.au
Profits Causing Inflation in Australia, Not Wages: European Central Bank & ABS Data Reveal
New research shows that only a trivial portion of Australia’s inflation has come from wages this year, while rising prices continue to drive not just inflation, but profits to record highs. Key findings: Wages made no contribution to Australian inflation in 2019-2020, or 2020-2021, measured using the ABS’s broadest indicator of inflation, the GDP Deflator